Competency and Compensation

A large part of sustainable growth for contractors is being able to effectively leverage people with a narrower set of skills to still deliver the same level of value-add to the customer.

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This support structure is called “Enabling Bureaucracy” and is a combination of management time, control systems, QA/QC, workflows, training, etc.

Leadership Tools: Graph representing Value-Add and Compensation with Quantity of people in the workforce, ability to manage ambiguity, and skill level and execution.

As contractors grow they need to refine their organizational structures, workflows, job descriptions  and their talent processes to support this growth.

These support structures must be built over time and integrated with the contractor’s growth strategy.  Once effectively in place these support structures will produce a more scalable organization that can actually deliver the same value-add to the customer at a lower total cost providing a competitive advantage. 

These systems are slow, painful and costly to put into place.  The recruiting focus of a contractor must be in alignment with the levels of support structures they have in place.  Netflix defines this quite well in their culture slide deck and book.  

Are your support structure capabilities and recruiting in alignment?  

If not there will be excessive stress on the team combined with lower profitability.  This just means you are at one of the inflection points on the business growth cycle.




Bureaucracy (Stifling or Enabling)
Talent density versus the complexity of the construction business or project is what determines the level of bureaucracy required for sustainable growth.
Michael Jordan and Failure
When it comes to our personal learning and coaching others, it is critical to stay in the “Learning Zone” as much as possible. Maximum benefit comes from pushing the outer limits of the learning zone into the panic zone where you will fail.
Degree of Discretionary Time with Growth in Role Levels and Business Size
The degree of discretionary time that someone has in doing their job grows with their role level - for example from crafts person to VP of Operations. For similar roles, that time decreases with company growth as the job roles become more tightly defined.